Material data collection in the Automotive Industry James Lundström, Manager, Material & Weight management <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

The world of Volvo Cars Head office, product development, marketing, administration – Göteborg, Sweden, (Shanghai, China) Design Centre - Göteborg, Sweden; Barcelona, Spain; Camarillo, California/USA Component manufactures in Sweden – Skövde (engine), Floby (component), Olofström (stamping) Represented in about 100 countries at approx. 1,900 dealers Sales/Service units 2011 Europe 1,184 USA & Canada 361 China 91 Rest of the world 356 Total: 1,892 <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Global sales - top ten markets 2011 2010 2011 Change Europe 169 315 191 412 13.1% Nordic Europe 72 278 81 927 13.3% North America 60 502 74 088 22.5% China 30 522 47 140 54.4% Overseas 37 159 50 416 35.7% International 3 749 4 272 14.0% TOTAL 373 525 449 255 + 20.3% Sales = cars delivered to end-customers. <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Environmental issues at Volvo; 1972 Purchasing Market Communication Market & Sales Recycling Product Development Production Planning End of pipe solutions Higher chimneys Dilution 1. Genomgång av de olika punkterna i de grå rutorna: - Beskrivning av området - Beskrivning vad VCC gör inom resp område 2. Beskrivning gula pilarna = basen för vårt miljöarbete: <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Today’s Environmental focus at Volvo Cars Producer responsibility ELV-Networks Reuse Recycling Recovery Reports Seminars Labelling Product Declarations Environmental Requirements Purchasing Market Communication Market & Sales Recycling Product Development Production Planning Fuel Economy Vehicle Emissions Noise Materials of Concern Alternative Fuels Mobility Occupant Environment Alternative Powertrains Solution at source Closed loop systems Energy efficiency Control of Chemicals Dealer Environmental standards Packaging Maintenance products Exchange system Logistics 1. Genomgång av de olika punkterna i de grå rutorna: - Beskrivning av området - Beskrivning vad VCC gör inom resp område 2. Beskrivning gula pilarna = basen för vårt miljöarbete: Education Environmental Management Systems Holistic view <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

…And brought this focus to our products First Automotive company to have 3rd party certified ”Environmental Product Declaration” and the use of LCA Widespread use of simplified LCA-based tools such as E-FMEA Focus on Air Quality since the 90’s. Both interior and exterior ”Clean Compartment” Sub-brand First OEM to be certified by Swedish Asthma and Allergy Association DRIVe Focus on CO2 emission and holistic Environmental Impact Volvo Car Corporation led the CO2 reduction in 2011, with a reduction of 9%.   <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

ELVs - Problems or possibilities? (and the impact of material data collection) <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Relevant information about cars The most complex consumer product Many different types of materials (metal, plastics, textiles, rubber, fluids) 3000-5000 parts per car 15-25 year life span Many spare parts and accessories Few OEMs Volvo: more than 250.000 parts are currently being sold worldwide Vi anser att vi har den mest komplexa konsumentprodukt som finns <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Why Collect Information? End of Life Vehicle Directive, 2003 Recyclability part of Type Approval Internal requirements Customer concerns Efficiency Future Needs REACh Green Chemistry initiative Scarce raw materials Material content? Automotive Industry anno1998 Kostnad för Cr6+ hos daimler Vi tjänar pengar på IMDS <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

The European End of Life Vehicle Directive (2000/53/EEC) ELV objectives: Prevention of waste from vehicles Improvement in environmental performance Reuse & recycling of End-of-Life vehicles to reduce disposal of waste Limits the use of Heavy Metals Producer pays principle <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

The rest of the world North America: Focus on hazardous substances, not recycling Korea: ELV-type legislation in place China: Draft ELV legislation in place Japan: JAMA voluntary agreement and ASR tax (After Shredder Residue) Taiwan: Voluntary regulation India: ELV under development Mexico: ELV subsidised by Japan Conclusion: A Diverse climate to work in <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

1998 The Start of the International Material Data System (IMDS) <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

What is IMDS Web based tool to create and send “Material Datasheets” Used to transfer information about material, substances and weight per components Launched in 2001… …and has turned into an industry standard Free for all users, funded by the OEMs Used throughout the whole sypply chain For more information; http://www.mdsystem.com <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Scope of process solution Material LÄS TEXTEN HÖGT. - Undvika pappershantering. - Exempel: Toyota - Moralisk skyldighet gentemot kund. - Vi ska överträffa kunders förväntan och våra egna kärnvärden. “Collect all information regarding material and recycling virtually, to prove current and future legal compliance” <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

The Communication Issue <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

The Solution: Common industry solution (IMDS) Lieferant Lieferant Lieferant Hersteller <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Material Datasheets Provides a detailed specification of the part: Component: Complete engine to small wahser… Material: SS-EN steel, ISO1043 Polymers… Substances: Iron, Lead, PBDE, Polypropylene etc. The user creates a ”Bill of Material” with all necessary information Components with attached materials Materials with attached substances <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Additional use of IMDS Collect data on usage of recycled materials REACH relevant information highlighted Automatic feedback on non-compliant parts Communication platform Tools to manage program timing and data delivery (Industry network platform) <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

1998 2011 <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

IMDS In Numbers 100.000 Companies 40.000.000 Material Datasheets 350.000 new datasheets every month Available in 9 languages Used on every continent of the world <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Timing… <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Limitations of IMDS Only for the automotive industry Not always in the interest of our suppliers Very centralized approach IT-structure Funding (i.e interest) Easily becomes a political issue 12 years old, starting to show Difficult to expand beyond original scope <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Spin-offs from IMDS Huge impact regulatory development Legislation developed around IMDS Used as best industry example Improved Environmental Performance Global industry harmonization of ”Restricted Substances” within the Automotive Industry (GADSL) Industry networks formed around substance compliance Chemical industry a main contributor of knowledge <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Global Automotive Declarable Substance List Common Industry wide ”Black and Grey list” for parts Specifies substances of ”interest” to the Automotive industry Developed in cooperation between OEMs, suppliers and raw material producers Updated annually GADSL fully integrated into our processes, such as IMDS GADSL will manage any future regulation such as REACh <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

How does IMDS help with REACH? Tool in place to track all relevant substances Article 33 under control with no additional processes Annex XIV and Annex XVII can be tracked automatically Facilitates impact assessments of new candidate list entries Easy to understand relevant Annex XV dossiers and provide industry input <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

”Lessons learned” with IMDS Tremendous effort to launch, end customer will always be the driver Time and resources ”Ketchup effect” Good internal organization needed, support over time Common requirements is a must Good communication between suppliers and manufacturers is a must Educational effort is needed throughout the industry, don’t overestimate supplier knowledge Suppliers must be given time to react Strong correlation between system quality and data quality Cooperation is the key to success! <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Thank you for your Time! Contact information James Lundström : jlundst2@volvocars.com : 031-325 8771 <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Backup <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Some advice Business drives Environment Environment drives Business Legal requirements seldom follow business logic Make sure your business can adapt efficiently Legal requirements always evolve, be proactive Legal requirements are (mostly) Non-competitive, Co-operation saves time and money Never underestimate the timing issue for major change Involve all affected parties from the beginning Keep engineering issues outside of politics <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Next gen. IMDS? http://public.cdxsystem.com/web/cdx/home <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

AIG - Automotive Industry Guideline Version 2.0 How Does REACh affect you? What are your responsibilities? Is there any recommendations? AIG is your guide! http://www.acea.be/reach/ <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>

Conclusions Environmental product development has moved from generic tools (LCA-based) to specific subjects Key subjects today (beyond CO2) are: Recycling, Substances of concern and consumer impact The residual value of our products creates a good business case for recycling Volvo and the Automotive industry is well adapted for future material and substance regulations, worldwide The knowledge level is beyond any other industry today Which helps us being proactive and improves our environmental performance The automotive industry is one of the most regulated but also most succesful in terms of Environmental Product Development <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2> Issue date: <2012-05-15>, Security Class: <Public>